20-108.0041. Bond Exempt Fruit

Citrus fruit to be exempt from bond coverage shall be limited to the following:

(1) Fruit handled that is produced by the applicant. To qualify for bond exemption, this fruit must be produced on groves that are either owned or leased in the applicant’s business name appearing on the license application.

(2) Fruit handled for its members by an applicant that is a cooperative marketing association organized under the provisions of Chapters 618 or 619, F.S. To qualify for bond exemption, the fruit must be owned by members of the cooperative.

(3) Fresh fruit handled by the applicant which has been purchased from a registered packinghouse other than the applicant and has been inspected and certified for shipment.

(4) Fruit handled by the applicant from citrus groves for which the applicant provides complete grove management services, under direct contract with the owner or producer.

(a) “Complete grove management services” is defined to mean that the caretaker or contracting dealer shall have, in writing, full authority to:

1. Handle or supervise all of the grove maintenance work.

2. Market, in the name appearing on his citrus fruit dealer’s license, all fruit produced on the grove or groves covered.

3. Receive payment for all fruit so marketed.

4. Pay all bills or charges incurred in the performance of these services.

5. Submit the balance of all payment received, along with a full accounting of all expenditures, to the producer.

(b) The contract shall be properly executed, cover the period for which the license is to be issued, and shall include the following:

1. Name and mailing address of the producer.

2. Date executed and the period of time for which contract is to be in force.

3. Name, if any, and location of the grove or groves covered.

4. Exact type and nature of services to be rendered by the caretaker or contracting dealer, including a statement authorizing said caretaker or contracting dealer to perform complete “grove management services” for the owner or producer.

5. Estimated number of boxes of each variety of citrus fruit expected to be produced on the grove or groves covered during the season for which contracting dealer has applied for license.

6. A clear statement that the producer understands that no citrus fruit dealer’s bond will be posted by the contracting dealer for the volume of fruit covered by the contract and that, as a result, the producer will not have recourse under any citrus fruit dealer’s bond that may be posted by the contracting dealer during the contract period regardless of the type or nature of any default that may occur involving the purchase, handling, sale, and accounting of purchases and sales of any citrus fruit covered by the contract.

(c) A copy of all such contracts shall be filed with the Department of Citrus. If the Department finds that the contract or contracts conform with all requirements outlined above, it shall recommend to the Department of Agriculture that the contracting dealer not be required to post bond for that volume of fruit covered by such contracts.

(5) Fruit handled by a corporate or partnership applicant that is from citrus groves owned by officers or stockholders of the corporation, the parent corporation, a wholly owned subsidiary corporation or its corporate officers or stockholders, or any partner of a partnership. To qualify for bond exemption, properly executed waivers of right to any claim against any citrus fruit dealer’s bond which may be posted by the applicant for other fruit handled shall be attached to and made a part of the application for license. The waivers shall cover the period of time for which the license is to be issued and shall include the following:

(a) Name and mailing address of the producer.

(b) Business relationship of the producer to the applicant.

(c) Date executed and period of time for which the waiver is to be in force.

(d) Name, if any, and location of the grove or groves covered.

(e) Estimated number of boxes of citrus fruit expected to be produced on the grove or groves covered by the waiver during the season for which the applicant has applied for a license.

(f) A clear statement that the producer understands that no citrus fruit dealer’s bond will be posted by the applicant for the volume of fruit covered by the waiver and that the producer expressly waives any right to make a claim against any citrus fruit dealer’s bond which may be required to be posted by applicant for other fruit handled.

(6) Fruit handled by the applicant which has been processed by a registered processing plant, other than the applicant. To qualify for bond exemption, the citrus products must have been prepared for commercial marketing and the appropriate certificate of inspection issued.

Rulemaking Authority 601.10(1), 601.61 FS. Law Implemented 601.61(5) FS. History‒New 8-31-15.